Iberdrola Weighs Sale of Stake in US Renewables Business

(Bloomberg) -- Iberdrola SA is weighing the sale of a stake in its US renewables operation, people familiar with the matter said, as part of plans to bring in new investors across its business.

The Spanish power company is considering seeking a financial partner for its existing green energy projects in the US and to help fund future initiatives, the people said, asking not to be identified discussing confidential information.

Deliberations are ongoing and no final decisions on the size or timing of any stake sale have been made, according to the people. A representative for Bilbao-based Iberdrola declined to comment.

The move is in line with Iberdrola’s 2023-2025 strategic plan to pay-down debt and reduce its cost of capital by raising billions of euros through asset rotation and the sale of stakes in certain units. Earlier this month, it sold 49% of its Spanish renewable business to Norway’s sovereign wealth fund. It offloaded a stake in a German wind farm to Energy Infrastructure Partners AG in September and is also looking to sell an interest in its Brazilian transmission lines.

Iberdrola said at a recent investor day that its biggest capital expenditure over the three-year period will be expanding its electricity network in the US, where it’s one of the three largest renewable energy companies. Its New York-listed subsidiary Avangrid Inc. is present in 25 states and manages more than 9,000 megawatts of total electricity generating capacity, according to its website.

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